Rumors of Govt. Discussion of Currency Devaluation Denied in Knesset

November 9, 1961

JERUSALEM (Nov. 8)

Finance Minister Levi Eshkol today denied in Parliament that the Israel Government is discussing the possibility of devaluating the Israeli currency. On the basis of his statement, the Parliament rejected a motion to hold an open debate or discuss in committee the matter of the stability of the Israeli pound.

Benjamin Avniel, a Herut deputy, submitted the motion and said he was doing so because rumors were being circulated about the possible devaluation of the pound which was harming Israel’s economy; He added that a clear statement on the question by Finance Minister Levi Eshkol was needed to stop the rumors.

The Finance Minister objected to discussion either in the Knesset or in committee and said emphatically that the Government did not discuss any such possibility; He agreed that harm was being done by such rumors but insisted this was not a question for discussion in Parliament, adding that no Parliament discusses such matters; He proposed that the matter be removed from the agenda and a majority of the deputies so voted.